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E46 (1999 - 2006) The fourth generation 3 Series (E46 chassis) was introduced in 1999 and set the standard for engineering and performance during it's years of production including being named to Car & Driver's 10 best list every one of those years! ! -- View the E46 Wiki

your fine...most of us do and ignore the fact that our oil level sensor has gone bad. Not worth the $100 IMO since we still have a oil dipstick to check our fluid.

my yellow light goes on in both of my E-46's right after start up, for several seconds, and then goes out...cleaned them when I dropped the oil pans but refused to replace them out of shear stubborness.

My engine is really sensitive and I get the yellow light when I shut the car off after spirited driving if my level is down even a couple ounces. As long as I keep the oil right at the top of the range, I'm fine.

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"It is little use listening to other people as they will either be agreeing with you or saying stupid stuff" - Dogbert

I'm not a pessimist. At some point the world sh!ts on everybody. Pretending it ain't sh!t makes you an idiot, not an optimist.

Ebay has several new models of these Oil Level Senders for less than $50.00 and many in the $75.00 range. I just bought a German made one with the rubber ring and gasket for $37.95. I do want my oil level light to give me accurate readings in between my checking it.

I wouldn't just assume the sensor is bad...if it is coming on every 500 mi and you add a quart of oil and it comes on again 500 later it probably means you are leaking/consuming oil. Check your oil level on a regular basis to see for sure (check with hot or cold oil, but make sure you do it the same every time. If hot, wait for 5 min after shut down).

I had this problem recently -- turned out to be the oil separator, but could also be oil filter housing gasket or valve cover gasket.